Petrol sales grow for first time since lockdown began; petrol, diesel prices fall this much in September

Petrol sales rose for the first time in September since the nationwide lockdown began in India. Indicating the recovery in demand, the sale of petrol rose 2 per cent to 2.2 million tonnes in September compared to 2.16 million tonnes in the same month last year and 1.9 million tonnes during August 2020, PTI reported citing provisional data from PSU oil marketing companies. However, diesel sales remained below normal, though with a month-on-month increase. The demand for diesel fell 7 per cent on-year to 4.84 million tonnes but it was 22 per cent higher over 3.97 million tonnes in August 2020.

The rise in personal mobility leading to more private vehicles on roads is attributed to the increased petrol demand. Contrary to this, the ongoing restrictions on school buses and public transport in various places are held responsible for the low sales of diesel.

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As the demand for retail fuel increases, the prices of petrol and diesel have been falling since the start of the month. The price of petrol and diesel has decreased by Rs 1 per litre and Rs 2.9 per litre respectively during September 2020. Even across Mumbai, Chennai and Kolkata, the auto fuel prices have been falling during the month of September, said a report by Care Ratings. Diesel price is falling on the back of subdued product prices and almost steady crude oil prices globally, the report added.

Meanwhile, the government is able to collect around 201 per cent taxes in the form of excise duty and VAT on the base price of petrol and 164 per cent in the case of diesel. Taxes now make up around 64 per cent of the retail price of petrol and diesel 60 per cent of the retail price of diesel, as on 1 October 2020.